Gold hits 27-year highs as dollar drifts

Spot gold rose as much as $2.90, or 0.4 per cent, to $771.10 an ounce, and traded unchanged at $768.20 at 8:49 a.m. in Singapore. Gold had hit a record $850 an ounce in January 1980.

Silver for immediate delivery gained 0.2 per cent to $13.83 an ounce.

Gold futures for December delivery touched a 27-year high of $776.90 an ounce on the Comex division of the New York Mercantile Exchange, and traded at $773.60 an ounce at 8:54 a.m. in Singapore.

In Japan, gold for delivery in August was up 0.2 per cent at 2,875 yen a gram ($776 an ounce) on the Tokyo Commodity Exchange.

Platinum also held near record highs, supported by supply concerns following the closure of two mines in main producer South Africa. Silver and palladium also firmed.

Gold has gained as much as 20 per cent this year on fund buying driven by record-high oil, the Federal Reserve''s surprise move to cut interest rates by 50 basis points, a weak US dollar and recently, tensions in northern Iraq.